Which of the Following Statements About the Surrender Cost Index

question 2

Multiple Choice

Which of the following statements about the surrender cost index for measuring the cost of life insurance is true?

• A)It is based on the assumption that the policy will be in force indefinitely.
• B)It takes into account the settlement options available in the policy.
• C)It does not consider the cash value in the policy.
• D)It takes the amount and timing of each dividend into consideration.

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Definitions:

NMR

Nuclear Magnetic Resonance, a spectroscopic technique used to observe local magnetic fields around atomic nuclei, facilitating the determination of molecule structure.

IR

Stands for Infrared Spectroscopy, a technique used to identify and study chemicals through their absorption of infrared radiation.

Broad

Having a wide range, scope, or extent; in NMR, a broad signal suggests a diversity of chemical environments or interactions.

Singlet

In NMR spectroscopy, a signal that appears as a single peak, indicating an atom's hydrogen atoms are not coupled to other hydrogen atoms.